Veto Blocks Financing of Valley Commuter Trains

Saying the legislation raised the possibility of abuse, Gov. George Deukmejian on Friday unexpectedly vetoed a bill that called for diverting some money earmarked for the Metro Rail subway in the San Fernando Valley to a proposed Amtrak-operated commuter train.

The bill’s author, state Sen. Alan Robbins (D-Van Nuys), termed the veto “a very minor setback” and said he planned to meet the governor’s objections by amending another bill next week to accomplish the same thing.

The legislation, which has widespread local support and passed both houses of the Legislature with little opposition, also would delay until Sept. 29, 1989, the start of Metro Rail tunneling between Universal City and North Hollywood.

But the provision that triggered the veto called for setting up a trust fund for Valley subway construction money, which is to be contributed by the state, Los Angeles County and the city of Los Angeles.

The Los Angeles County Transportation Commission would have controlled the account, releasing funds once construction got under way.

In his veto message, Deukmejian objected to placing state funds under local control--saying that a non-state agency “could inappropriately divert state funds and earned interest from the state highway account.”

He said: “I would be willing to sign a bill that clearly indicates state money is not to be placed in the fund.”

‘Shifting Funds Around’

Robbins said he was undecided whether to attempt to set up separate trust accounts for state and local money or to seek approval from the city and county to forgo state funding for the Valley construction.

That could be done “by merely shifting funds around,” he said, “without decreasing the state’s total contribution to the project or increasing the city or county’s share.”

But Los Angeles City Councilman Mike Woo--who, hours before the veto, persuaded the council to appropriate $427,750 for initial subway-design work--said he was “completely mystified as to where we go from here with regard to Metro Rail in the Valley.”

Woo, who represents the council on the county Transportation Commission, said it “might be difficult to work out a new financing plan” for Valley subway work because some commissioners favor substituting above-ground light rail for Metro Rail between Universal City and North Hollywood.

Some council members have grumbled about spending money on Valley subway tunneling when it remains uncertain when, or even if, the Valley leg of Metro Rail will be linked with the segment being built in downtown Los Angeles.

The council appropriation, which was unanimous, represents one-fourth of the estimated $1.7-million cost for completing design work on the Valley segment.

Gary Spivack, planning director for the Southern California Rapid Transit District, which is building Metro Rail, said the funds will be used to design tunnels north of Universal City. He said the tunnels will be needed for storing subway cars, even if the subway never reaches North Hollywood.